Mosman Farms Out Oz Permit

London-listed Mosman Oil & Gas has farmed out a stake in its 100%-owned EP 155 permit application in the Amadeus basin in Australia's Northern Territory, it announced on May 11.

The farminee is Westmarket Oil & Gas, a wholly-owned subsidiary of Australia-focused helium developer Georgina Energy. Under the deal, Westmarket will be responsible for Native Title negotiations needed for the permit to be granted. It will also undertake technical work under the permit's work programme, in return for operatorship and a 70% working interest in the permit. In addition, it will pay Mosman A$15,000 ($9,700) to cover past costs and a further A$15,000 once seismic reprocessing work is completed.

Westmarket has the option to take a further 15% interest if it agrees to carry Mosman through the cost of drilling a well. 

 "We are pleased to have concluded the farmout on EPA 155 so that the project can be progressed at no cost to Mosman," Mosman chairman John Barr said. "The farminee interest is an endorsement of the potential of the permit area for both hydrocarbons and helium."

EP 155 is situated within the Horn Valley Siltstone fairway between Mereenie and Surprise oilfields. Two wells drilled at the site in the past reported oil shows, according to Mosman.

Georgina Energy controls the EP127 permit in the Northern Territory's Southern Georgina basin, which it says on its website has "significant" helium, oil and gas potential. Mosman retains its 100% interest in the EP145 permit, where it is seeking financing to advance the Amadeus gas project.